The End Of The Bernanke Era?

Ben Bernanke is nearing the end of his second term as Chairman of the United States Federal Reserve and most believe he has no desire to stay on for a third.  A recent survey conducted on the basis of this assumption concluded that Janet Yellen, the current number 2 at the Fed, is the best suited candidate to take over the position. The survey included nominations ranging from J.P. Morgan chief executive Jamie Dimon to MIT economist and “big bank critic” Simon Johnson. However, Yellen and Bernanke himself remained the most likely candidates with 46% and 29% respectively.  

Bernanke’s term will end early next year which has been another factor in the speculation over the Fed’s current bond-buying program. 34% of economists surveyed believe the Fed will begin to slow its monthly purchases in the third quarter of this year while a whopping 54% believe the Fed will halt the program completely in either the 1st or 2nd quarter of 2014. It will be interesting to see if Bernanke himself alters the program prior to the end of his term since unemployment and inflation have yet to reach target levels.

Evan Chang

Source:

The Wall Street Journal

http://blogs.wsj.com/economics/2013/04/13/who-will-succeed-bernanke-who-should/

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